- 14 Nov 2022
- ICICIdirect Research
AIA ENGINEERING REPORTED STRONG NUMBERS ACROSS THE BOARD IN Q2FY23
AIAENG - 3365 Change: -43.00 (-1.26 %)News:
AIA Engineering reported consolidated revenues at Rs 1328.7 crore (above our estimate of Rs 1150.7 crore), grew by 50.1% on a YoY basis
· Absolute EBITDA came at Rs 311.4 crore, grew by 92.3% YoY (above our estimates of Rs 252.6 crore). EBITDA margins expanded by 515 bps YoY to 23.4% (above our estimate of 22%), and gross margins came at 56.5% (vs. 55.4% in Q2FY22)
· AIA reported PAT at Rs 244.3 crore (above our estimate of Rs 211.5 crore), up by 77.1%YoY, though other income has decreased by 10% on a YoY basis to Rs 32.1 crore
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Overall, AIA delivered a strong Q2FY23 performance in a challenging business environment. However from a structural view, we like AIA given the duopoly characteristics of its industry, industry leading capacity, operating efficiency and solid balance sheet flush with high liquidity. The key concern in the medium term is growth in volumes, which is swinging on account of factors like Covid, delay in new client addition and litigation in some key markets.
Impact:
Positive